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We have all heard about Bitcoin, how it is; an excellent investment, the gold of cryptocurrency, or a scam to others. Most people who are not keen on adapting to changing trends see Bitcoin as a scam. To them, the volatile nature of the crypto markets cements this analogy. To some, Bitcoin is the best way to go when you want a high rate of return for your investment.
1. Understanding what a bull Run is.
Before you understand BTC price predictions, you need to understand what a bull run is. A bull run occurs when the chart is bullish. It is when the BTC price trend continues to rise.
Nobody knows precisely when a Bitcoin bull run might begin or end, but it happens every three years or so. When mining 210000 BTC blocks is done, the halving even occurs, and so does the bull run.
Despite the price crash in March 2020, due to the pandemic, on 18th December 2020, Bitcoin broke the previous highest recorded price of $20,000, reaching $23,169.56. As of 18th January 2021, Bitcoin looks bullish as ever, with a record price of $36,388.5. Comparing BTC to traditional markets, It has bounced back more robustly and faster.
It is an increase of $13218.94 in just one month. The Market Cap is $676,959,000,000 , Volume (24h) is $51,854,000,000, Circulating Supply 18,603,600 BTC while the Maximum Supply is 21,000,000 BTC.
2. Top 5 predictions
BTC price prediction from 2021 to 2028
a) BTC is becoming more valuable
Bitcoin price has increased its price from $7,200.17 on 1st January 2020 to $28528.17 on 1st January 2021. It is an over 300% increase in just 1 year. The predicted price on 1st January 2022 is $56,624.80.
Bitcoin's price is increasing by the second. Some experts are predicting that BTC may hit a high of $318000 by the end of 2021.
Dallas maverick Owner, billionaire Mark Cuban said, "Bitcoin is just like any stock. Its price is driven by supply and demand."
Forbes on 11th January posted an article titled," Bitcoin's Recent Surge Creates New Billionaires." Forbes estimates each of the Winklevoss twins worth in digital assets doubled in just a month to $1.4 billion as of 11th January 2021.
PayPal has 26 Million merchants it supports, and it lets its 300 million customers buy bitcoin and spend it on any of them.
In 2020, Square, a payments giant 2020 used $50 million to buy bitcoin, and the investment now valued at $161 million
b) Big financial institutions are warming up to Bitcoin.
Wall Street is warming up to bitcoin after years of being a skeptic. Founder of Quantum Economics and portfolio manager Mati Greenspan said, "The main difference between now and the 2017 rally is that back then the market was driven by retail speculation, and now it's being driven by corporations and billionaires,"
In November, leaked analysis from Citibank technicians suggested that Bitcoin could surge to $318,315.72 by December 2021.
c) BTC can double again
Mike Novogratz tweets to the Game Of Thrones actress Maisie Williams predicted that BTC price could hit $65000 in 2021. His prediction for 2020 was correct. Let us see whether he is right.
"Nothing is steady when one technology supersedes another. As Bitcoin eclipses the government currencies and the banking system, there will be many fits and starts. I stand by my $250,000 prediction by the end of 2022 or early 2023." He added.
d) BTC carry on threatening gold
Gold price is currently at $1,834.87, and experts predict that it might be at $ 1900 per ounce. An increase of $ 65 in one year, such a slow lazy growth compared to BTC, don't you agree? With BTC forecasting growth of $28,096.63 in one year, it is clear why BTC can continue threatening gold. With the rise of people shifting to working online and mobile banking or transactions, BTC is getting more famous as young people as viewing it as a safe currency.
e) Cryptocurrency might get taxing
Suppose you fail to declare your crypto holdings. In that case, the government is beginning to set up the action. Especially if you live in the U.K. or the U.S., Her Majesty's Revenue and Customs and The Internal Revenue Service claim that if you sell BTC more than you bought, it means you are liable to pay capital gains as it is a taxable event.
Keep in mind that governments and central banks can closely look at the BTC surging market cap. Here are a few things to remember on BTC taxing.
- If you use Bitcoin to pay for goods and services, it is taxed as income.
- You must report employee earnings if you are an employer paying with Bitcoin.
- Withholding tax is subject to wages paid in virtual currency.
- The capital gain or loss can be taxed from any profit or loss of capital asset, so if you hold Bitcoin as a capital asset, any income or loss can be taxed.
- If you realize ordinary gain or loss on an exchange, you must treat them as property for tax purposes.
- According to the Internal Revenue Service (IRS), any earnings from Bitcoin mining, whether in fiat or crypto or any other form, must be included as gross income. It is achieved by determining the fair market dollar value as of the day you received it.
- Self-employment tax is subjected If a bitcoin miner is self-employed, with gross earnings minus allowable tax deductions.
So BTC still on the rise? Yes, it is, and it is expected to continue rising. Lior Messika, founder and managing partner of venture capital firm Eden Block, said, "As time goes on, the bitcoin narrative is strengthening, although the global belief in its usability is still negligible. This has resulted in continuing volatility for the asset."
A UK watchdog warned that people could lose all their money if they invested in bitcoin. It is something that has been said by a couple of other people. It is advised to use any spare cash you have to invest in BTC or any other cryptocurrency. It is money that would not affect you as much if you lost it.
Are you looking to trade Bitcoin in 2021? You need to choose a reliable trading platform first. We recommend the Bitcoin Digital app. This website is a great place to trade crypto coins.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.